Consumer database loyalty program for a money transfer system

ABSTRACT

A money transfer system provided in connection with a loyalty program where the loyalty program members are assigned a loyalty identifier. The system includes point of entry ports to communicate transaction information with points of entry; a promotion database, a customer database, a pricing database, an analytics port to communicate marketing information with a marketing analytics system and a transaction processing system. The transaction processing system updates the promotion database as a function of the marketing information, receives money transfer transaction requests including loyalty identifiers, determines whether the requested transactions are entitled to loyalty program promotions, prices the transactions as a function of base transaction pricing and promotions pricing of any promotions to which the transaction is entitled, provides the transaction pricing information, updates the customer database as a function of transaction information and periodically provides transaction information to the analytics port.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.11/846,323, filed Aug. 28, 2007, entitled CONSUMER DATABASE LOYALTYPROGRAM FOR A MONEY TRANSFER SYSTEM, which application is incorporatedherein by reference in its entirety and for all purposes.

TECHNICAL FIELD

The invention relates generally to money transfer systems. Inparticular, the invention is a consumer database loyalty program andsystem for use in connection with a money transfer system.

BACKGROUND

Businesses such as Western Union and MoneyGram International offer moneytransfer and other services through a network of agents. A consumer thatdesires to use these services to transfer money to a third party takesthe money to one of the agents. The agent accepts the money, obtainsnecessary information such as the consumer's identity and the identityof the third party transferee, and initiates a transaction. The money isthen made available to the third party transferee by another agent.

Only limited consumer identity information, such as name and/or phonenumber, is typically required to initiate a transaction. It cantherefore be difficult to effectively market money transfer services torelevant groups and individual consumers. MoneyGram International offersa discount program known as MoneySaver. A card with a MoneySavermembership number is issued to participating consumers, and entitles theconsumers to a fixed discount (e.g., 5%) when presented in connectionwith a transaction request. Again, however, only limited identityinformation about the consumer is required for membership in theMoneySaver program. Consumers can also have more than one MoneySaverprogram membership. The MoneySaver program is therefore relativelylimited both as a marketing tool and as a source of information aboutconsumers of money transfer services. For these reasons there is acontinuing need for improved systems for marketing money transferservices.

SUMMARY

The invention is a consumer database loyalty program and related systemfor use in connection with a money transfer system. The loyalty programand system enable money transfer services to be effectively marketed torelevant consumer groups and individuals. It also enables efficientinformation exchange and transaction settlements between the operatorsof the money transfer system and agents.

One embodiment of the invention includes point of entry ports tocommunicate transaction information with points of entry, a promotiondatabase including information representative of promotions andpromotions pricing, a customer database including informationrepresentative of customers' transaction histories, a pricing databaseincluding base transaction pricing, an analytics port to communicatemarketing information with a marketing analytics system, and atransaction processing system. The transaction processing system canupdate the promotion database as a function of the marketinginformation, receive money transfer transaction requests, determinewhether requested transactions are entitled to promotions, price thetransactions as a function of the base transaction pricing and thepromotions pricing of any promotions to which the transaction isentitled, provide transaction pricing information, update the customerdatabase as a function of transaction information, and providetransaction information to the analytics port.

In another embodiment of the invention at least some users of the systemare members of a loyalty program and have a loyalty identifier. Thepromotion database includes information representative of promotionsavailable only to loyalty program members. The transaction processingsystem can receive money transfer requests including loyaltyidentifiers, determine whether the received loyalty identifier is valid,determine whether the requested transaction is entitled to any loyaltyprogram promotions, and update the customer database as a function ofwhether the transaction was entitled to a loyalty program promotion.

Examples of promotions that can be provided by the system includefrequency and recurrence promotions, value tiered promotions, volumetiered promotions, and volume plus value tiered promotions.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of the components of a money transfer systemfor implementing a consumer database loyalty program in accordance withthe present invention.

FIG. 2 is a flow diagram of a money transfer transaction performed usingthe system shown in FIG. 1.

DETAILED DESCRIPTION System 10 Overview

FIG. 1 is a block diagram of a money transfer system 10 includingcomponents for providing a consumer database loyalty program inaccordance with one embodiment of the present invention. As shown, moneytransfer system 10 includes transaction processing system 12 interfacedto promotion database 14, customer database 16, pricing database 17 anduser interface terminal 18. A marketing analytics system 22 is alsointerfaced to the transaction processing system 12. Customer access tomoney transfer system 10 is made through points of entry, shown asremote agent terminals 20A-20C in the illustrated embodiment. Each ofthe remote terminals 20A-20C is located at the store or otherconsumer-accessible facility of one of the network of agents providingmoney transfer services through system 10. Three terminals 20A-20C areshown for purposes of example only. Typically a much larger (e.g.,worldwide) network of agents will have terminals such as 20A-20C. Theagents operating the terminals 20A-20C can be independent contractorsoperating under contractual arrangements with the operator of the moneytransfer system 10. In addition or alternatively, the terminals 20A-20Ccan be at facilities of the operator of the money transfer system 10.

As described in greater detail below, marketing analytics system 22receives information relating to the money transfer transactionsperformed by transaction processing system 12, including the customeridentity numbers of the consumers for which the transactions werepreformed. Using this information the marketing analytics system 22 cangenerate relevant marketing information, including proposed promotions.Information relating to promotions available to consumers, includingpromotion rules and pricing discounts, is stored in promotion database14. Information relating to base or standard fees can be stored in thepricing database 17. Alternatively, information relating to promotionscan also be stored in pricing database 17.

Consumers using money transfer system 10 can, but need not, participatein the loyalty program offered by the operator of the system. Loyaltyprogram members are assigned a customer number or other unique loyaltyprogram identifier. Loyalty cards with the loyalty program numbers, suchas 21A-21C in FIG. 1, can be provided to the consumers for convenience.Typically, however, the loyalty cards 21A-21C need not be presented attransactions to receive loyalty program benefits as long as thecustomers can be otherwise identified. A fulfillment service (not shownin FIG. 1) that is accessed by consumers through a call center and/orwebsite can accept consumer applications for a customer number, issuethe numbers and loyalty cards, and provide related services such asreplacing cards and numbers. The fulfillment service can be provided bythe operator of the money transfer system 10 or by a third party vendor.The customer numbers are stored in customer database 16, along withother customer-related information including transaction histories(e.g., dates, amounts, send and receive locations) of the money transfertransactions undertaken by the associated consumers. The fulfillmentservice can also use the customer database 16 in an effort to maintain adesired relationship of one loyalty number to one customer.

Transaction processing system 12 includes award engine 24, loyaltyaccount processor 26 and pricing service 28. As described in greaterdetail below, award engine 24 uses information in promotion database 14to determine what promotions, including pricing discounts, may beapplicable to money transfer transactions. Pricing service 28 determinesthe pricing or fees, including promotion discounts, applicable to moneytransfer transactions initiated by consumers. Loyalty account processor26 updates the information in customer database 16 followingtransactions or as new information of the types maintained in thedatabase otherwise becomes available.

FIG. 2 is a flow chart describing the general operation of system 10during a money transfer transaction, including the use of loyaltyprogram components. As shown at step 40, a consumer requesting atransaction will provide the agent with the appropriate transactioninformation (e.g., identification, amount of transfer, transferee andsend location) including his or her loyalty program number if they are aloyalty program member. The name and/or telephone number of the consumercan be accepted as identification in some embodiments of the invention.The presentment of the loyalty card itself may or may not be required.For example, if appropriate identification information is presented bythe consumer, the agent can access the transaction processing system 12to determine the consumer's loyalty program number.

The transaction information is entered into the terminal 20A by theagent and transferred to the transaction processing system 12 as shownat step 42. If a loyalty program number was received as part of thetransaction information, processing system 12 checks the information incustomer database 16 to determine whether that customer number is valid(step 44). As noted above, even if no loyalty program customer numberwas received, or if the customer number is not valid, the transactioncan proceed as one not associated with the loyalty program if othertransaction requirements are met. However, the transaction would not beentitled to any promotions reserved for loyalty program customers, andinformation relating to the transaction may not be stored in thecustomer database 16.

If it is determined at step 44 that a valid customer number has beenpresented, award engine 24 checks the promotions database 14 todetermine if the requested transaction is eligible for any promotions(step 46). At step 48 the transaction is then priced using the relevantpricing information in promotion database 14 and/or pricing database 17,and the pricing information is communicated back to the consumer throughterminal 20A. If the customer is not a loyalty program member or thetransaction is not entitled to any promotions, pricing service 28determines the base fee applicable to the transaction using theinformation in pricing database 17, and that base fee is returned to theterminal 20A. The information communicated to the consumer can include adescription of any applicable promotions and the discount applied.Information regarding the transaction is stored in the customer database16 as shown at step 50. The transaction can be logged as a loyaltyprogram transaction if it is entitled to benefits of the program, orlogged as a non-loyalty program transaction if for any reason it was notentitled to the benefits of the program. Examples of the transactioninformation that can be stored include the name and location of thetransferee, the type of transaction and the dollar value, date and timeof the transaction. Periodically (e.g., daily), the updated transactionhistories in customer database 16 can be transferred to marketinganalytics system 22 as shown by step 52.

A more detailed description of various components of money transfersystem 10 and its operation follow.

Agent Terminals 20A-20C

Although the illustrated embodiment of the invention uses terminals20A-20C for initiating money transfer transactions, other embodiments ofthe invention (not shown) include other and/or additional points ofentry such as a website or a telephone call center that can be accessedby a consumer. The terminals 20A-20C can be interfaced to thetransaction processing system 12 through conventional data andinformation communication ports. Entry of the consumer's phone number orcustomer number can be accepted as an identifier by the transactionprocessing system 12 for purposes of identifying the customer. The entryof a loyalty program customer number belonging to the consumer presentat the agent terminals 20A-20C is required for the transaction to counttoward loyalty promotions available to the consumer in some, but notall, embodiments of the invention.

As described below, some promotions available to the consumer canrequire a promotion code or other promotion identifier. The terminals20A-20C can validate the format of the promotion identifiers at the timeof entry. The promotion identifiers are transferred to the award engine24 for use in determining promotions available to the consumer.

The terminals 20A-20C can display and print receipts including thepromotion identifiers, the non-discounted base fee amount, discountamount and fee amount for quotes and transaction confirmations. Thediscount amount value can be calculated and displayed at the terminals20A-20C using the fee amount and base fee amount. A promotion identifiercan but need not be returned to the terminals 20A-20C even if one wasentered.

Promotional messages provided by transaction processing system 12 can bedisplayed and printed by the terminals 20A-20C. The text messages can,for example, alert the agent and/or consumer that the next transactionwill be subject to a promotion (e.g., free or discounted). The messagecan also provide a promotion identifier with an offer to participate inanother promotion. Terminals 20A-20C can periodically receive and storepromotional message updates from transaction processing system 12.

Customer Services Provided by System 12

Customer services can be offered to agents operating terminal 20A-20Cand/or the customers. For example, the number of loyalty programtransactions completed by each customer can be maintained in thecustomer database 16 and provided upon request. This transaction historyinformation can be provided with the discount amounts awarded, accrualtallies by transaction volume and face value. Transactions notassociated with any promotion can also be shown. Alternatively, thenumber of qualified transactions can be determined from an evaluation ofstored information regarding the customer's previous transactions. Newcustomers can enroll in the loyalty program. Existing customers canrequest replacement loyalty program cards. Descriptions, legal terms andconditions and other promotion-related facts can be provided, and can beorganized by links to the promotion names. Customer information such asmarketing and promotion opt-in/out preferences, address, phone number,e-mail address, and names stored in the customer database 16 can beupdated to enhance promotion history integrity.

Customer Database 16

Customer identification and transaction history information can bestored in customer database 16. As is discussed above, the storedidentification information can include customer name, address, telephonenumber, loyalty program number and user preferences. Stored transactionhistory information associated with customers can include promotion IDs,promotion codes, the non-discounted or original fee amount, the loyaltyprogram discount amount, promotion discount amounts, fee amount, sendlocation and time and date of the transaction. Customer segments forexplicit or customer direct offers can be associated with promotionalcodes or piece codes and promotions so the transaction processing system12 can determine the customer's eligibility for promotions. Eachtransaction history associates to one customer and to either one or noloyalty program numbers in one embodiment of the invention. Up toforty-eight months of transaction history are stored for customers inone embodiment of the invention, although transaction histories overlonger and shorter periods are stored in other embodiments.

A replica of the customer database 16 can be stored as part of themarketing analytics system 22. In these embodiments the data in thereplicated version of the customer database 16 is periodically updatedwith the customer and transactional activity to ensure synchronousintegrity of the local and remote content.

Marketing Analytics System 22

Marketing analytics system 22 provides a number of marketing andcampaign management functions. Although not shown in FIG. 1, system 22includes user interfaces and software tools in connection with thesefunctions. Functions of these types can, for example, be provided byEpsilon Data Management, LLC of Dallas, Tex., and include the following.System 22 is interfaced to the transaction processing system 12 throughconventional data or information communication ports, and can be locatedin the physical proximity to or remotely from the processing system.

Provision of Segmented Customer Lists. A tool can supply files or listsof segmented and selected consumers from the customer database 16 (or areplica at system 22). The criteria for these selections can be inputtedby an operator through terminal 18. For example, the tool can producelists of customers that are pre-qualified for promotions. The customerson the lists can be directly associated to a promotion code and/or apiece code. The customer list data can be accepted and loaded withreference to promotion set-up data allowing the transaction processingsystem 12 to qualify the customers to a promotion.

Automated Integration. A user interface front end promotional servicecan provide automated integration to and from the campaign managementtool.

Customer Selections. A tool can allow the selection of all customer datacriteria from the customer database, including, but not limited to,agent, customer, country, product and transactions. Selections can alsobe made by customer flags (i.e., opt-in/out).

Customer List. A tool can provide customer information in multiplepredefined standard layouts for mail shop, database loading and transferto downstream systems.

Marketing and Campaign Analysis. A tool can run analyses on transactionhistories, campaign responses, etc. The tool can deliver information tosystems to which it is interfaced by writing the data to files.

Customer Sampling. Random sampling and anything can be provided.

List Suppression. A tool can suppress against multiple lists.

Build New Business Metrics. A tool can perform various datatransformations and build new business metrics. The tool can transformcodes into values, assign attributes based on conditional logic, createrange breaks and build expressions or aggregates. By way of example, thetool can allow a business analyst to create measures to perform recency,frequency and monetary analysis.

Measure Campaign Results. A tool can measure the results of a campaign.The tool can, for example, save a campaign history in a database forevaluation and response analysis.

Export Results. A tool can be used to report results to commonapplications such as Microsoft Excel, Powerpoint or Word.

Automatic-Data Driven Activities. A tool can allow on-off, or multiple,data-driven activities to be processed cyclically (waves), automaticallywithout user intervention.

Infrastructure support.

Identification of Customer Buying and Other Transaction Patterns.

Promotions in Database 14

Promotion information including rules and discount amounts is stored inpromotion database 14. Additional information such as the agent'scommission share burden for associated promotions can also be stored indatabase 14. Examples of consumer driven or explicit promotions that canbe provided by system 10 include the following.

Direct to Consumer Next Transaction Direct Mail. By way of example, mailoffers can be directed to a promotion engine driven list of customersfrom the customer database 16, where the offer states that the customerswill receive a certain amount of money off the fee for their nexttransaction within a given time period. No promotion code is needed fora promotion of this type. The discount can be internally applied whenthe customer information is populated at the time of the customer's nexttransaction.

Surprise and Delight. Lists of customers selected from customer database16 can receive their next transaction free or at a reduced fee based ona current campaign. In one embodiment the agents at terminals 20A-20C,and the customer receives the reduced fee transaction without priorknowledge of the promotion.

Direct to Consumer Through Internal Tracking Direct Mail. Direct mailoffers are made to customers selected from database 16. The offer canstate that if the customer makes a certain number of transactions (e.g.,three), one or more subsequent transactions (e.g., the fourth) is freewithin a set period of time (e.g., six months).

Receipt Offer on Next Transaction—Consumer Direct. By way of example, areceipt can be printed after a completed transaction offering a discountoff a subsequent transaction (e.g., 20% off the next US to UStransaction). A promotion code can be printed on the receipt, and theagent at a terminal 20A-20C uses the promotion code on the nexttransaction to apply the discount. In one embodiment of this promotion,the promotion code is unique to the customer and can only be appliedonce.

Direct to Consumer Volume Tiered Loyalty. An existing loyalty programcan be relaunched as a tiered frequency loyalty promotion.Alternatively, the program can be a new loyalty program that isindependent of any existing programs or co-existing with other loyaltyprograms. For example: Enroll to save; complete three transactions andsave 5% on the next three transactions; complete six transactions andsave 10% thereafter until a specified date; all transactions must occurwithin a certain time period.

Direct to Consumer Volume Loyalty. An existing loyalty program can berelaunched as a frequency loyalty program. Alternatively, the programcan be a new loyalty program that is independent of any existingprograms or co-existing with other loyalty programs. For example: Enrollto save up to $10.00 on every 8^(th) transaction completed within acertain period of time.

Direct to Consumer Value Tiered Loyalty. The program can be a newloyalty program that is independent of any existing programs orco-existing with other loyalty programs. Alternatively, the program canbe a relaunch of an existing program. For example: Send $1500.00 or moreand save 10% thereafter until a specified date; send $2500.00 or moreand save 15% thereafter until the specified date; all transactions mustoccur within a certain period of time ending on the specified date.

Direct to Consumer Volume and Value Tiered Loyalty. The program can be anew loyalty program that is independent of any existing programs orco-existing with other loyalty programs. Alternatively, the program canbe a relaunch of an existing program. For example: Complete threetransactions totaling $1500.00 or more and save 10% thereafter until aspecified date; complete six transactions totaling $2500.00 or more andsave 15% thereafter until the specified date; all transactions mustoccur within a certain period of time ending on the specified date.

Examples of non-explicit promotions that can be provided by system 10include the following. These promotions can, for example, be providedover media such as TV, radio or other broadcasts, magazines, newspaperor other publications, and can be done in connection with coupons havingpromotion codes.

Promotion Code Driven Direct Mailing. The customer database 16 and/or anexternal source can be used as the mailing list origin. For example:Direct mail to consumers with an offer stating that they will receive$2.00 off on transactions from the U.S. to another specified country;promotion code xxx is used for anyone who presents the promotion codefor a certain time period. The direct mailer can identify participatingagents or other points of entry.

Location Specific Direct Mail. The customer database 16 and/or anexternal source can be used as the mailing list origin. For example:Direct mail to consumer stating that all transactions from agents at aspecific store receive $5.00 off for the next three months. Promotioncode yyy is entered by the agent when the consumer brings in the directmail with the transaction request.

Traditional Mass Media. For example: Promotion code zzz is in anadvertisement in the newspaper. The advertisement offers 5% off oftransactions over $30.00 for one month. The agent will enter promotioncode zzz and the transaction processing system 12 will take 5% off thetransaction fee. As another example: No promotion code is printed, but anewspaper advertisement states that all U.S. to another specifiedcountry transactions in a specified month have a 10% discount. The U.S.to that specified country corridor transaction has a promotionidentifier attached in the promotion database 14 or transactionprocessing system 12, and the fee discount is automatically appliedwithout the agent having to enter a code at the terminal 20A-20C. Thereason for the discount can be printed on the receipt. As yet anotherexample: promotion code xxx is published with an advertisement in anewspaper; the advertisement offers 5% off of transactions over $300.00during a specified month at a specified agent location; the agent willenter the promotion code xxx and the transaction processing system 12will discount the transaction fee by 5%.

Receipt Offer on Next Transaction—Consumer Direct. For example: Areceipt is printed after a completed transaction offering to take 20%off the next transaction for U.S. to U.S. transfer; a promotion code isprinted on the receipt and the agent at terminal 20A-20C uses thepromotion code on the next transaction to apply the discount to the fee.In one embodiment the promotion code is unique to the consumer, can beused by anyone, and can only be applied once.

Promotion Set Up by Transaction Processing System 12

Authorized personnel can use terminal 18 to set up and maintainpromotions in the money transfer system 10. Rules and other descriptiveinformation about promotions is stored in promotion database 14 in oneembodiment of the invention. In other embodiments, some or all of thepromotion information is stored in other memory locations. Promotionscan be given a unique promotion identifier, a short name, a narrativedescription and have legal terms and conditions defined. Baselinepromotion rules, control and eligibility items that are captured includethe following:

Duration. Duration can be indicated with start date and end date.

Historical Eligibility View. The period of time that award engine 24searches when considering history to determine eligibility.

Status. This parameter indicates the current promotion status (e.g.,set-up, active, closed).

Type of Promotion. Examples include loyalty, surprise, receipt directand others described above.

Loyalty Program Indication. The promotion can be indicated to be oneassociated with the loyalty program. Loyalty program offers can have aunique class or category of promotion. Certain rules can, for example,apply only to loyalty program participants in some embodiments of theinvention (e.g., the limitation of one active loyalty program promotionand the option to combine that promotion with another). In theseembodiments the set-up process can ensure that only one loyalty programpromotion is active.

Code Requirement. If desired, eligibility for a promotion can requirethat a promotion code or piece code be entered or provided by thecustomer. This requirement is specified as part of the rules set up.

Commission Sharing. The set up items can include information relating tocommission sharing. For example, an agent commission discount shareoverride and/or the agent discount share rate can be indicated. Duringsettlement, any override rate can be used for agents when calculatingthe commission share of transaction fees for associated promotions. Sucha share rate can override standard commission discount share rates.

Promotional Messages. Any messages to be printed on receipts orotherwise displayed to the customer or agent, and any associated dataitems passed as message variables to the point of entry, can beindicated.

Promotion Rules Security. The rules and other descriptive items can besecured to prevent changes (e.g., with respect to eligibility rules,reward schedules, and calculations to active promotions with transactionhistory).

Marketing and Campaign Facts. Attributes required or useful to themarketing analytics system 22 can be entered.

Relationship to Loyalty Program. A promotion can be indicated to becombinable or not combinable with loyalty program rewards.

Point of Entry Eligibility Control. Points of entry that are eligible toprocess promotions can be identified. Eligible points of entry must havethe capability of supporting the data needs of associated promotions.For example, minimum software release numbers at eligible points of salecan be specified.

Send Location Eligibility Control. Eligible send locations (locations towhich money can be transferred) for the promotion can be identified(e.g., by agent, agent location, and geographic location).

Currency Eligibility Control. Valid send currencies for the promotioncan be identified. For example, promotions that specify the reward as amonetary amount may be required to be send currency specific and requiretransactions to originate in a designated currency. Percentage typediscounts may not require currency restrictions.

Eligible Times. The eligible time period within the promotion durationcan be identified. Examples include specific days of the week, timeslots, weeks of the month, and date to date (i.e., promotion periodstart and end dates).

Eligible Customers. Eligible customers can be identified. Examplesinclude explicit (pre-qualified) customers, non-explicit (massmarketing) customers or both.

Eligible Products. The operator of money transfer system 10 may offer anumber of different products (e.g., money transfer, bill pay, moneyorders, official checks, gift certificates). Products eligible for agiven promotion can be identified.

Eligible Transactions. The operator of money transfer system 10 mayoffer a number of different delivery options for certain products (e.g.,will-call, directed sends). Eligible transaction types and/or deliverymethods can be identified.

Reward Schedules. For example, frequency and recurrence information canbe identified for rewards based on number of eligible transactions(e.g., set the reward occurrences to identify the rewarding at specificnth transactions and optional recurring nth transactions). Value tieredinformation can be identified for rewards based on amounts sent (e.g.,the amount tier levels and corresponding discount percentages). Volumetiered information can be identified for rewards based on the number ofqualified transactions completed (e.g., the number tier levels andcorresponding discount percentages). Similar information can beidentified for volume plus value tiered rewards.

Award Definitions. The awards to be given per the reward schedule areidentified. Examples include a fixed amount to be taken off the basefee, a percentage to be taken off the base fee amount, and/or a fixed orflat fee amount. Amounts can be specified in any required send currencyfor the promotion.

Award Limits. Any award limits can be identified. Examples of awardlimits include a maximum award amount a customer can be awarded forparticipating in a promotion, maximum reward (discount) per transactionin a promotion, maximum quantity and number of rewards throughparticipation in a promotion.

Promotion Codes. Available promotion codes and usage rules can becreated and defined. The codes are preferably synchronous with the codesdefined in the marketing analytics system 22. The codes can indicatewhether the associated promotions are time limited, one time use or timeunlimited. The codes can be identified as explicit or implicit.

Piece Codes. Piece codes can be used in connection with some promotions,and will often be logically subordinate to any promotion codes. Piececodes generally have more granular identity than promotion codes, andcan be associated with a customer by the mail piece or receipt. Piececodes can have the attributes of promotion codes, and in addition belinked to a customer.

Promotional Messages. Promotional messages for display and/or printingat the point of entry can be identified. All promotions can make use ofa common set of messages. The messages can have unique identifiersindicating whether they are for print, display or both, static textparts for each language, the number and positional location of variablesfor each language.

Import Customer Segments. The import of eligible and pre-qualifiedcustomer segments from the marketing analytics system 22 can besupported. In one embodiment of the invention eligible customers providea code at the point of entry to participate in the promotion, andpre-qualified customers do not.

Import Piece Codes. The import of piece codes generated by marketinganalytics system 22 and assigned to customers can be supported.

Award Engine 24

Award engine 24 interfaces with other components of the transactionprocessing system 12, including loyalty account processor 26 and pricingservice 28, and with databases 14, 16 and/or 17 either directly orthrough the other components of the transaction processing system. Thebase fee is returned from pricing database 17 through pricing service28, and may be a special non-promotional price. Calculation of anypromotional discounts to which the customer may be entitled can be doneby the award engine 24 to enhance the consistency of promotionalperformance and tracking.

As described above, one embodiment of the invention distinguishesbetween transactions that qualify for benefits of the loyalty programand transactions that do not qualify for the loyalty program. Thepresence of a loyalty program number during a transaction indicates thecompletion of the verification of the customer as a loyalty programmember, thereby qualifying the customer. The transaction is qualifiedfor loyalty program benefits if the transaction date is between theloyalty start and end dates and the transaction is one entitled toloyalty program benefits (e.g., if the send location is the U.S. and thetransaction is a money transfer).

In the embodiments of the invention that provide promotion benefits onlyto members of the loyalty program, the award engine 24 increments thequalified transaction tally for the customer and determines thediscounts to which the customer is entitled. For example, if entitled totiered offers the tier level can be determined by comparing the currenttransaction tally to tier plateaus, and to obtain the discountpercentage or amount for the tier. The discount can then be applied tothe base fee amount. Similarly, for non-tiered offers, if thetransaction tally is at a reward level frequency, the discountpercentage or amount is determined for the frequency and applied to thebase fee.

The award engine 24 returns the loyalty program discount fee results fordisplay at the terminals 20A-20C. The base fee is provided as thenon-discounted fee amount. The discount adjusted fee amount is providedas the fee amount for qualified transactions. The base fee amount isprovided as the fee for non-eligible transactions.

Upon confirmation of a successfully completed transaction, the recordsin the customer database 16 are updated to reflect the transaction. Ifappropriate, the stored information reflects the customer's transactionas one done in connection with a loyalty program promotion. Thisinformation can be used to validate past and future promotioneligibility and loyalty program participation and progression talliesand reporting. Transactions that fail to complete are not tracked asparticipating in the promotion in one embodiment of the invention. Inanother embodiment of the invention, same day reversals are not countedin the tally for loyalty program accrual or rewards. Reversals orcancellations that that are not completed on the same day as theoriginal transaction can similarly be not tracked as participating inthe promotion.

As described above, other embodiments of the invention providepromotional benefits to customers that are not participants in theloyalty program. These non-loyalty program promotional benefits can beprovided in addition to or as an alternative to those of the loyaltyprogram. In this embodiment of the invention the award engine 24 can usethe customer identity obtained and the promotion or piece code enteredat the terminals 20A-20C. The award engine 24 interfaces with thepricing service 28 to obtain the base fee. Calculation of promotionalprices can be done by the award engine 24 to enhance consistency ofpromotional tracking and maintenance.

In one embodiment of the invention the award engine 24 determines whichif any promotional offers are available to the customer and selects thebest. Selection for eligibility can be determined using the followingsequence of methods: (1) Promotion or Piece Code Driven—the promotion orpiece code provided by the terminal 20A-20C is always considered thebest offer; (2) Explicit Customer Driven, Non-Loyalty Program—thecustomer is identified in a currently active pre-qualified list receivedfrom the marketing analytics system 22 with (a) the promotion giving thelargest reward on the current transaction, or (b) promotion accrual; (3)Non-Explicit Promotions—A non-explicit promotion giving the largestreward on the current transaction; and (4) Loyalty Program—a loyaltyprogram member discount may be combined with any discounts offered in(1)-(3) above when allowed by the promotion rules.

Eligibility is verified to ensure that the customer and transactionsatisfy all the rules of the promotion. Examples include: (1)determining whether the promotion is in active status; (2) determiningwhether the customer is eligible for the promotion by (a) identifyingthe customer on an active pre-qualified list (e.g., a list received fromthe marketing analytics system 22) and/or (b) the promotion allows open(non-explicit) customers to participate; (3) if a valid promotion codeor piece code was not provided, the promotion can offer an impliedpromotion code for the award engine 24 to assign (e.g., the transactionis not eligible if a promotion code cannot be assigned); (4) thetransaction date is on or after the promotion start date and one orbefore the promotion end date; (5) the transaction date and time iswithin the eligible time period within the promotion (if specified); (6)the transaction send location is eligible; (7) the transaction sendagent is eligible; (8) the transaction type is eligible; (9) thetransaction send currency is valid; (10) the transaction face value isequal or greater than the threshold amount; and (11) the customer hasnot already been awarded the maximum available reward for the promotion(e.g., this can be based on the number or value of previous rewards bythe promotion rules).

The scheduled transaction reward is then located by the award engine 24.For occurrence and recurrence (frequency) promotions, the customer'stransaction tally is incremented by one. If the transaction tally isequal to one of the occurrence or recurrence frequency points, then thereward type and value set for the frequency is set. For value tieredpromotions, the aggregate face value of the customer's qualifiedtransaction history is compared to the tier level amounts set in thereward schedule. The selected schedule tier reward level can be the onewith the tier value nearest and of lesser or equal value than theaggregate amount. For volume tiered promotions, the customer's previoustally of qualified transactions is incremented by one to provide a newtransaction total. The transaction tally is then compared to the tierlevel quantities set in the reward schedule. The schedule tier rewardlevel selected can be the one with the tier quantity nearest and oflesser value than the transaction tally total. For volume plus valuetiered promotions, the customer's previous tally of qualifiedtransactions is incremented by one to provide a new transaction total.The transaction total and aggregate face value of the customer'squalified transaction history is compared to the tier level quantitiesand amounts set in the reward schedule. The schedule tier reward levelselected can be the one with the tier quantity nearest and of lesservalue than the transaction tally total and the aggregate amount is equalor greater than the tier value amount.

If the transaction is eligible, but not selected or scheduled for areward, it can be categorized as an accrual transaction. Accrualtransactions may not be given a discount, but are considered eligibleand tallied as part of the customer's transaction history. Rewardabletransactions have the selected reward formula applied to the base feeamount using the reward type and value set for the selected tier orfrequency giving the discount amount and fee amount. When calculatingthe discount the award engine 24 considers any promotion maximum amountlimit and the transaction maximum amount limit. If either is exceeded,the discount is adjusted to the smallest value allowable by theassociated rules. The discount amount typically cannot exceed the basefee.

The promotional discount and any associated results are then returned tothe terminals 20A-20C for display and/or printing. Eligible transactionscan return the promotion code used, base fee amount, fee amount,promotional message identifier and any variable message components (inthe appropriate language). Non-eligible transactions can return the basefee amount and fee amount. The promotion code identifier can be leftblank, or can contain a value to indicate that no promotion was applied.Applicable promotional messages are identified and the associatedvariable message components are assembled. Loyalty program or frequencypromotion messages can be tailored to alert the agent and customer whenthe next transaction will be free or discounted.

Confirmed transactions will be processed and a completion statusreturned. Successfully completed transactions will initiate promotionalrecord keeping of the customer's transaction history in customerdatabase 16. For example, information indicating that the customer andtransaction participated in the promotion identified by the promotioncode can be stored. The stored history can include information thatvalidates past and future promotion eligibility, loyalty programparticipation, progression tallies and reporting. Examples includecustomer identification, promotion identification, promotion code,transaction date, transaction type, face value, base fee amount,discount amount and fee amount. Transactions that fail to complete maynot be tracked as participating in a promotion.

Agent Commissions and Reporting by System 12

Transaction processing system 12 can be configured to generate reportsdescribing the share or burden of customer discounts, if any, that areapplicable to the agents operating terminals 20A-20C. Different agentsmay have different contractual commission arrangements with the operatorof money transfer system 10, and for any given type of promotion orreward the share burden the agents' commissions can be different.Information representative of the contractual base or standardcommission share burden for each agent and the share burden for eachpromotion can be stored (e.g., in a commission database (not shown)).Transaction processing system 12 can thereby generate accuratecommission reports for each agent.

Loyalty program accrual reports can show potential or projected agentcommission liability based on consumer participation. For example, thereport can include the number of customers and transactionsparticipating at tier levels with the percentage and discounts given.Non-tiered loyalty promotion reports can include the number of consumersby frequency progression and discounts given. Customer loyaltypromotions that reward customers “progress” with free or discountedtransactions can capture the participating customers, the progress theyare making toward the reward and the expected redemption value. Thisinformation can be used by the transaction processing system 12 toaccrue for expenses that may be incurred in the future.

In one embodiment of the invention the agent's send discount shareburden is stored as a percentage to be used when calculating commissionson transactions in all promotions. An agent can participate in allpromotions at the same discount share burden rate. Alternatively, theshare burden rate can differ for different promotions. In one embodimentof the invention, this accounting process can be implemented byincluding in the promotion rules in the promotion database 14 anoverriding send agent discount share burden percentage. Duringsettlement the transaction processing system 12 can determine whether adiscount share burden rate is associated with the promotion identifier,and if found, use that discount burden rate in the commissioncalculation instead of the non-promotion agent rate.

In one embodiment of the invention the receiving agent's commission iscalculated by applying the standard rate to the final fee amount. Inother embodiments the receiving agent's commission can be calculatedfrom the base fee.

The invention offers a number of important advantages. Marketingpersonnel can effectively define customer segments and profile thesesegments to identify patterns within the customer data. These personnelcan also enter selection criteria from the customer database forpromotional opportunities. The customer and promotional informationprovided can be optimized by customer, nature of offer and timing ofoffer.

Although the present invention has been described with reference topreferred embodiments, those skilled in the art will recognize thatchanges can be made in form and detail without departing from the spiritand scope of the invention. In particular, although components of thetransaction processing system are shown and described as differentphysical elements, these components can alternatively be differentlogical components of one or more common physical components of thesystem. Although described in connection with a money transfer system,the invention can also be used in connection with other productsprovided by the operator of the system, including bill pay, moneyorders, gift cards, etc.

What is claimed is:
 1. A money transfer system capable of providingdiscounted fee money transfer transactions, including: point of entryports to communicate transaction information with points of entry; apromotion database including information representative of promotions,including promotions pricing, wherein the information representative ofpromotions includes information representative of promotions availableonly to loyalty program members; a customer database includinginformation representative of customers' transaction histories andcustomers' loyalty identifiers for customers that are members of aloyalty program; a pricing database including base transaction pricing;an analytics port to communicate marketing information with a marketinganalytics system; and a transaction processing system connected to thepoint of entry ports, promotion database, customer database, pricingdatabase and analytics port, wherein the transaction processing systemis configured to: update the promotion database as a function of themarketing information; receive money transfer transaction requests,wherein at least some of the requests include loyalty identifiersidentifying the customers as loyalty program members; determine whetherany received loyalty identifiers are valid; determine based oninformation in the promotion database whether requested transactions areentitled to promotions, including whether the requested transaction isentitled to any loyalty program promotions; determine transactionpricing information as a function of the base transaction pricing in thepricing database and the promotions pricing in the promotion databasethat are associated with transactions determined to be entitled topromotions; provide the transaction pricing information to the point ofentry ports associated with the transactions to enable the transactionpricing information to be communicated to the associated points ofentry; processing the transaction, including determining whether thetransaction was completed; update the customer database as a function oftransaction information, including whether the transaction was entitledto a loyalty program promotion; and provide transaction information tothe analytics port.